This article re-presents findings of a report of the private sector consultancy firm URS Finance and Economics, produced for the Australian Government Department of Industry, Tourism and Resources (June 2004).

Overview

The Rugby World Cup (RWC) was held in Australia from 10 October to 22 November 2003. The tournament has been described as the largest international sporting event of 2003 and the largest sporting event to be held in Australia since the Sydney 2000 Olympic Games. The tournament was the fifth RWC and the second staged in Australia.

In the tournament 20 teams competed in a total of 48 matches including 40 pool matches and eight finals. These matches were spread across 11 venues in 10 cities around Australia.

Based on the data collected from various key RWC stakeholders, the key short-term economic impact results indicate that:

1.8 million spectators attended matches.

65,000 international visitors visited Australia primarily as a result of the RWC.

Nearly $200m in ticket sales were generated.

$494m in additional industry sales were generated, particularly in trade and hotels, finance and business services and recreational services industries. New South Wales, Victoria and Queensland gained the majority of RWC industry sales.

Almost 4,500 additional full and part-time jobs were created, primarily in trade and hotels, finance and business services and recreational services industries. New South Wales, Victoria and Queensland also gained the majority share of these short-term full and part-time jobs.

$55m in additional Commonwealth government revenue was provided (before grants paid to state governments).

$289m in additional gross domestic product was contributed to the Australian economy with New South Wales, Victoria and Queensland gaining the majority of this additional economic activity.

International visitors and expenditure

Number of visitors

As a result of Australia hosting the RWC, it was estimated that 65,000 international visitors visited Australia. This number was estimated to consist of 60,000 rugby supporters, 2,500 media personnel and 2,500 corporate visitors - predominantly business executives employed by global RWC commercial partners/sponsors.

A number of visitors associated with the RWC teams and international rugby organisations also came to the event. Based on Australian Rugby Union (ARU) information these include:

players and associated staff totalling almost 800 persons (42 per team with the Australian team excluded);

match officials totalling 25 from overseas; and

VIP overseas rugby guests totalling 250.

The ARU indicated that the majority of international visitors were from the United Kingdom and Europe. Table 21.24 provides a break down of international rugby tour visitors, media and corporate visitors. In terms of the corporate visitors, the ARU was of the view that the majority of these would be from the United Kingdom/Europe through the RWC commercial partners/sponsors.

21.24 INTERNATIONAL VISITORS, By origin

Region

Key countries

Rugby supporters

Media

Corporate

Total

United Kingdom/Europe

England, Ireland, Scotland, France, Italy and Wales

28,200

1,094

2,500

31,794

New Zealand/Asia Pacific(a)

New Zealand, Japan, Fiji, Tonga, Hong Kong and Singapore

18,600

813

-

19,413

Africa

South Africa and Namibia

10,200

438

-

10,638

Americas

Canada , USA and Argentina

3,000

155

-

3,155

Total

(b)60,000

2,500

2,500

65,000

(a) Based on information provided by the Qantas and the ARU, visitors from New Zealand/Asia Pacific were estimated at approximately 15,000 and visitors from Japan, Hong Kong and Singapore 4,413.(b) Of the 60,000 rugby supporters, it was assumed that approximately 40,000 of these travelled to Australia via 'RWC packages' while the remaining 20,000 were able to obtain tickets from family and friends in Australia and to a lesser extent obtain flights and RWC tickets only.

Source: URS Finance and Economics 2004.

Expenditure of international visitors

Table 21.25 shows the average international expenditure data on a per trip basis including airfares and expenditure while in Australia by region. Visitors from United Kingdom/Europe were estimated to have the highest expenditure and the longest average length of stay of all visitors at $8,302 and 36 nights. Next highest were visitors from the Americas spending on average $6,741, Africa $6,260 and New Zealand/Asia Pacific $3,153. This provided for a total trip expenditure for all visitors of $400.4m.

Major spending items of international visitors tended to be accommodation, food and drink along with airfares, packaged tours and retail shopping.

21.25 AVERAGE TRIP EXPENDITURE BY INTERNATIONAL VISITORS(a)

Total visitors

Average expenditure per visit 2003

Average length of stay

Average total daily expenditure

Total trip expenditure

Region

no.

$

nights

$

$m

United Kingdom/Europe

31,794

8,302

36

230

256.1

New Zealand/Asia Pacific

19,413

3,153

15

210

59.2

Africa

10,638

6,260

24

260

64.5

Americas

3,155

6,741

22

306

20.6

Total

65,000

. .

. .

. .

400.4

(a) URS has incorporated the assumption of some international visitors reducing expenditure in relation to visitors staying with family and friends totalling $12.2m. In addition, URS has also assumed a BTR average length of stay to calculate total average trip expenditure.

Source: URS Finance and Economics 2004.

Interstate visitors and expenditure

New South Wales received the most interstate visitors (49,948) followed by Victoria (43,284), Queensland (42,153) and Australian Capital Territory (25,760). Ticket purchases for interstate visitors were predominantly for games in New South Wales, Queensland and Victoria (66,916, 64,316 and 61,271 respectively), where the majority of preliminary games and the finals were played (table 21.26).

Interstate visitor expenditure in New South Wales was estimated at $47.8m, followed by Victoria ($41.4m), Queensland ($28.4m), Western Australia ($12.8m), South Australia ($7.5m), Australian Capital Territory ($3.8m) and Tasmania ($1m). Average expenditure per visit was also the greatest in New South Wales ($1,015) followed by South Australia ($1,007) and Victoria ($1,005).

For interstate visits the key items of expenditure were accommodation, food and drink.

21.26 INTERSTATE TICKET PURCHASES, VISITORS AND EXPENDITURE

Tickets purchased(a)

Interstate visitors(b)

Average expenditure
per visit(c)

Interstate visitor expenditure

Game location

no.

no.

$

$'000

New South Wales

66,916

49,948

1,015

47,785

Victoria

61,271

43,284

1,005

41,439

Queensland

64,216

42,153

705

28,352

South Australia

14,797

7,789

1,007

7,483

Western Australia

19,856

9,261

1,446

12,789

Tasmania

1,535

1,535

698

1,014

Australian Capital Territory

27,218

25,760

566

3,764

Total

255,808

179,730

-

142,625

(a) To remove domestic ticket purchases made for international visitors an estimate provided by an ARU survey of approximately 9% was deducted.(b) Number of visitors was calculated using the number of tickets and adjusting it for 'double headers' where people attended a number of games in the same weekend.(c) NSW people attending RWC matches in the ACT were assumed to spend $188 per trip.

Source: URS Finance and Economics 2004.

Impact on industry, employment and government finances

An additional $494m was generated in industry sales by the RWC, particularly in the trade and hotels industry, finance and business services and recreational services. New South Wales, Victoria and Queensland gained the majority of RWC industry sales ($411m, $48m and $22m respectively). Tasmania and Northern Territory were adversely affected, declining $5m and $2m respectively (table 21.27).

The RWC created an additional 4,500 short-term full and part-time positions mainly in the trade and hotels industry, finance and business services and recreational services. New South Wales, Victoria and Queensland benefited most from the RWC with 3,595, 428 and 303 jobs respectively being created.

The RWC provided an additional $55m to Commonwealth revenue before Commonwealth grants were paid to the State governments. The New South Wales government received the highest additional revenue of $19m including grants paid by the Australian (Commonwealth) Government and had the greatest expenditure at $34m. In aggregate, the states' budgetary position was estimated to have worsened by $14m (total revenue minus total expenditure).

21.27 ESTIMATED IMPACT ON INDUSTRY SALES, EMPLOYMENT AND GOVERNMENT FINANCES

Government finances

Impact on industry sales

Employment(a)

Revenue(b)

Expenditure(c)

State/Government

$m

no.

$m

$m

New South Wales

411

3,595

19

34

Victoria

48

428

8

7

Queensland

22

303

6

8

South Australia

-

27

3

1

Western Australia

4

65

3

2

Tasmania

-5

-46

1

-

Northern Territory

-2

-16

1

-

Australian Capital Territory

16

121

-

3

Commonwealth Government

-

-

55

(b)55

Total

494

4,476

96

110

(a) Estimates of employment are in terms of full and part time jobs and should be treated with some caution.(b) Includes Commonwealth grants to the states.(c) Includes state subsidies paid to RWC.

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